Bankruptcy not an option for Half Moon Bay

HALF MOON BAY, Calif. (AP) - Half Moon Bay officials are trying to figure out how to come up with $18 million by August after attorneys said the city can't file for bankruptcy to avoid paying the settlement.

The city settled a longtime dispute with a local developer after a federal court ruled in his favor in 2007. Developer Charles "Chop" Keenan claimed officials improperly blocked development on his property by making it into a wetlands area.

Mayor John Muller says attorneys advised officials this week that Half Moon Bay will have to pay Keenan because it doesn't fit the criteria for bankruptcy.

The city already has $4 million from an insurance settlement. Officials are now trying to secure loans and considering selling bonds to come up with the rest by Aug. 29.